Implementation of Energy Conservation Act 2001- II

15.6    Facilitate implementation of Energy Efficiency Programs in Small & Medium enterprise clusters through a Demo Project

Brief about Activity

The SME (Small & Medium Entrepreneurs) clusters typically suffer from problems such as legacy of old and inefficient technologies processes and operating practices apart from lacunae like shortage of funds for developmental activities, implementation of R&M Programs, cost reduction initiatives and above all lack of access to best practices and technical assistance through experts.  It is felt very essential and opportune for NSDA to design and implement a demonstration project in a SME cluster so that benefits of energy efficiency can be extended to the whole cluster to begin with and the experiment can be replicated among other similar clustersThe Demo project would comprise of the following activities:

15.6.1    Characterizing SME cluster constituents by way of processes, technologies, and energy use pattern etc. based on primary and secondary data sources and surveys.

15.6.2    Based on representative studies, the SME cluster, energy audit report would be brought out indicating present scenario of energy use, energy conservation opportunities, cost benefit analysis, vendors sourcing etc.
 
15.6.3    Based on the above, specific energy conservation opportunities and programs would be developed for the whole cluster.

15.6.4    Based on the above, two demo projects would be identified for implementation in the cluster based on cost benefits, multiplier effect and overall impact.

15.6.5    After the implementation of the project a dissemination workshop would be conducted for all the relevant stakeholders as a measure of experience sharing and with the objective of developing road map for similar initiatives by NSDA.
 
15.6.6    As a part of Demo project initiatives would be designed to address Capacity building of local vendors and service providers.

15.6.7    A Booklet would be prepared in local language as a measure of experience sharing and model exercise for other units and clusters to emulate.

Target Group/Beneficiary

The beneficiary would be small and medium scale industries in the selected cluster to begin with and other clusters eventually.

Technology Adoption/Resource Requirements

•    Initially the activities will be out sourced to professional organizations that are well experienced in such energy audits and demo projects.
•    BEE and EU expertise in respect of technical assistance is desirable

Implementation Strategy

•    NSDA would design the scope, terms of reference, for all the component of demo project, which would be administered by Group Head facilitation, at NSDA and implemented through ECAT members as designated task managers.  
•    The energy audits, characterization of energy efficiency measures and the design of demo project would be outsourced by NSDA to professional energy audit firms with relevant experience/exposure.  This would also help in capacity building at NSDA.
•    Based on the above document, ESCOs would be invited by NSDA to offer bids for implementation of the identified demo projects on shared savings/performance contracting basis.
•    The Demo project experiences would be documented by NSDA after their implementation,  
•    NSDA would also conduct a dissemination workshop on the demo projects for experience sharing as well as for planning future initiatives such as replication.

Implementation Issues

•    SMEs are averse to sharing information on processes, technologies etc.
•    SMEs are averse to Capital Investments and modernization programs on account of mortality concerns.
•    Inadequacy of technical literature and operational data is often experienced due to poor documentation and presence of very old/often second hand plant & machinery.
•    Inadequacy of technical/trained manpower is often a barrier in assimilating key information from the unit, identification of energy conservation opportunities and framing of recommendations.

Activity Duration

•    6 months for all preparatory activities up to design of demonstration projects.
•    18 months for implementation of the demonstration projects up to preparation of booklets.

Financial Implications

•    Budget estimate for all preparatory activities up to design of demonstration projects Rs. 20.0 Lakh.

Total Budget Rs. 20 Lakhs

Expected Output

•    Development of energy audit report for the SME cluster
•    Design template of demonstration projects
•    Capacity building through dissemination workshops
•    Booklets which would serve as reference
     
Activity Benefits

•    The Demo projects would build the capacity of NSDA for similar initiatives
•    The Demo projects would help the identified cluster SMEs in energy efficiency improvements through access and participations in a very focused program
•    The Demo projects would help improve competitive advantage of SMEs
•    The Demo projects would help generating utilities in demand and energy savings
•    The Demo projects would help in capacity building among the cluster SMEs as well as other clusters
•    The Demo projects would develop local delivery systems of energy efficiency through ESCOs, Vendors and other service providers

Implementation Responsibilities

NSDA

15.7    Conduction of demo projects in improving Energy Efficiency in Agricultural pumping systems

Brief about Activity

Target Group/Beneficiary

The beneficiary would be farmers and the State government.

Technology Adoption/Resource Requirements

•    Initially the activities will be out sourced to professional organizations that are well experienced in such energy efficiency studies.

Activity Duration

•    6 months for all preparatory activities up to design of demonstration projects.
•    18 months for implementation of the demonstration projects up to preparation of booklets.

Financial Implications

•    Budget estimate for the demonstration projects Rs. 20.0 Lakhs.

Expected Output

Activity Benefits

Implementation Responsibilities

NSDA

16.0    Preparation and publication of annual year book of energy conservation measures at State level

Target group / Beneficiary

The main beneficiary would be the Designated Consumers within the State apart from energy audit firms, NSDAs, ESCOs and other stakeholders.

Technology Adoption/Resource Requirements

•    IT infrastructure (hardware, software and Web linkages)
•    Systems and procedures for E-data filing by designated consumers.

Implementation Strategy

•    Well-defined monitoring parameters for annual operation plan would be set out to serve as reference basis.
•    Methodology/mechanism for accessing data in respect of
o    EC Act Impact,
o    Portfolio of energy conservation measures adopted, Case studies, Demo projects etc.
•    Half yearly and Annual dissemination workshops involving all stakeholders towards experience sharing
•    Documentation of Annual Reports
•    Publication of proceedings of the half yearly and annual dissemination workshops
•    Monitoring, documentation and workshop conduct activities to be out sourced

Implementation Issues

•    Processes and mechanisms for accessing data
•    Procurement process of outsourcing.
•    Capacity building of NSDA with respect to e-filing systems and procedures

Activity Duration

The activity would require 4 months every year.

Financial Implications

The budget for deliverable 16.0 would be Rs. 11.0 lakhs.

Expected Output

•    Document on success/achievements of case studies.   
•    Document on impact of EC Act 2001 on annual basis
•    Annual compendium of energy conservation measures  
•    Proceedings of the half yearly and annual workshops involving designated consumers and other stakeholders.

Activity Benefits

•    Document on success/achievements of various case studies would help to apply mid course amendments, budget allocation reviews, activity review, modifications as needed of the State Level Energy Conservation Action Plan.
•    Document on impact of EC Act 2001 on annual basis would help to assess tangible as well as intangible benefits of EC Act implementation.
•    Annual compendium of energy conservation measures would serve as a reference tools for all energy users and stakeholders in the State of Nagaland and will have multiplier effect.
•    Proceedings of the half yearly and annual workshops involving designated consumers and other stakeholders would serve as a powerful information exchange mechanism towards development of projects on a much larger scale.

Implementation Responsibilities

NSDA

17.0    Survey of buildings at State level which fall under the Energy Conservation Act

Brief about the Activity

17.1    Amend ECBC
17.2    Prepare Commercial building list as designated consumers

Target group / Beneficiary

The main beneficiary would be the Designated Consumers as commercial buildings within the State apart from energy audit firms, NSDA, ESCOs, PWD, State builder associations, and other stakeholders.

Technology Adoption/Resource Requirements

•    Access to ECBC document
•    Data on specific needs of Nagaland commercial buildings as designated consumers
•    Data on specific needs of Nagaland State in respect of ECBC customization.
•    Computer hardware, software and Internet connectivity as a start up requirement (these have been addressed in IT infrastructure needs of NSDA as given in Annexure - I .
•    The generation of databases for commercial building as designated consumers as a first time activity may be outsourced with implication of consultancy charges.
•    The maintenance of hardware and software, regular updation of databases as a maintenance activity will be taken up by NSDA Group Head Development afterwards (or out sourced).

Implementation Strategy

•    Activity 17.1 would be carried out by NSDA through consultative workshops with stakeholders like State PWD, State Builders Associations and surveys as required. The process of consultative workshops, surveys, documentation as above would be outsourced.
•    NSDA would develop terms of reference for the outsourcing activities.    Designated ECAT members to be task managers for the outsourcing process, quality assurance etc. NSDA Group Head Development to administer the overall activity implementation through ECAT task manager.
•    Information access would be enabled through Web linkage for benefit of all consumers/stake holders.

Implementation Issues

•    Procurement process of outsourcing on amendment of ECBC.
•    Capacity building of NSDA on ECBC
•    Procurement process of computers software, hardware, etc. would be outsourced
•    Generation of databases as well as generation of list of commercial building databases would be outsourced.

Activity Duration

09 months for initial preparation for ECBC and 06 months for initial procurements and maintenance activities of hardware, software and first time generation of databases. Updation of the databases would be carried out subsequently.

Financial Implications

The budget for activity 17.1 would be Rs. 7.0 lakhs and for activity 17.2 would be Rs. 6.5 lakhs.

Total Budget Rs. 13.5 lakhs

Expected Output

•    “EC standards for energy intensive equipments ECBC for State”  
•    Database of commercial building as designated consumers

Activity Benefits

•    Standards and ECBC customized to local conditions/needs is a pro-active initiative to help designated consumers and other stake-holders in energy efficiency projects mandatory or otherwise.
•    Smooth implementation of EC Act in the State.  Facilitates regular interactions among all the commercial building as designated consumers.  Helps NSDA to undertake customized developmental initiatives.

Implementation Responsibilities

NSDA

18.0    Preparation of report and analysis of State level incentive as well as disincentive policies concerning energy conservation measures in energy intensive industries including power sector

Brief about the Activity

18.1    “Publication of State Level Annual Book of Energy Conservation Measures” : A document to show what the State has achieved during the year.  Input / data / information would be collected from various sources namely, energy data filing by designated consumers, stakeholders meet, etc.  

Target group / Beneficiary

The main beneficiary would be the Designated Consumers within the State apart from energy audit firms, NSDAs, BEE, ESCOs and other stakeholders.

Technology Adoption/Resource Requirements

•    IT infrastructure (hardware, software and Web linkages)
•    Systems and procedures for E-data filing by designated consumers.

Implementation Strategy

•    Well-defined monitoring parameters for annual e-data filling by the designated consumers would be set out to serve as reference basis.
•    Methodology/mechanism for accessing data in respect of
o    EC Act Impact,
o    Portfolio of energy conservation measures adopted, Case studies, Demo projects etc.
•    Half yearly and Annual dissemination workshops involving all stakeholders towards experience sharing
•    Annual Reports would form reference basis
•    Publication of proceedings of the half yearly and annual dissemination workshops would form reference basis

Implementation Issues

•    Processes and mechanisms for accessing and submitting data
•    Capacity building of NSDA with respect to e-filing systems and procedures

Activity Duration

4 months as data analysis and report preparation and the activity would be repeated every year.

Financial Implications

The budget for the deliverable 18.0 would be Rs. 13.0 lakhs

Expected Output

•    Document on success/achievements of case studies, demo projects, etc.   
•    Document on impact of EC Act 2001 on annual basis
•    Annual compendium of energy conservation measures  
•    State level report on “Incentive as well as disincentive policies concerning energy conservation measures in energy intensive industries including power sector.”

Activity Benefits

•    Document on success/achievements of case studies, demo projects, would help to apply mid course amendments, budget allocation reviews, activity review, modifications as needed for Energy Conservation Action Plan.
•    Document on impact of EC Act 2001 on annual basis would help to assess tangible as well as intangible benefits of EC Act implementation.
•    Annual compendium of energy conservation measures in energy intensive industries would serve as a reference tools for all energy users and stakeholders in the State of Nagaland and will have multiplier effect.

Implementation Responsibilities

NSDA

19.0    Preparation of recommendation for streamlining State level policies concerning energy conservation

Brief about the Activity

19.1    “State Policy and Action Plan Formulation in the State” : NSDA would frame State Level Energy Policy, in accordance with EC Act 2001 mandates and focusing on various goals thereof with specific relevance to Nagaland.  The document “Action Plan” would be a base document for implementing the State policy of Nagaland.

Target group / Beneficiary

The main beneficiary would be the Designated Consumers within the State apart from   energy audit firms, NSDA, ESCOs and other stakeholders.

Technology Adoption/Resource Requirements

•    ECAT team members
•    Data / information on energy requirements within the State (tentative)

Implementation Strategy

•    The Action Plan would be developed by NSDA with technical assistance from NPC as Advisor-cum Consultant.

Implementation Issues

•    Development of the Action Plan
•    Discussion with ECAT team members
•    Discussion with BEE.

Activity Duration

•    2 months.

Financial Implications

The budget for the deliverable 19.0 would be Rs. 9.0 lakhs.

Expected Output

•    “State Level Energy Policy”
•    “State Level Five Year Energy Conservation Action Plan”

Activity Benefits

•    Focused action plan helps in smooth implementation of EC Act.
•    The action plan addresses mandatory as well as local interests in respect of energy conservation.

Implementation Responsibilities

NSDA
 
20.0    Suggest State Government to establish State Energy Conservation Fund

NSDA would suggest State Government to constitute Fund called “State Energy Conservation Fund” for the purposes of promotion of efficient use of energy and its conservation within the State (Under clause 16 (1) of EC Act 2001)

NSDA would also suggest rules and regulation for administering the Fund. (Under clause 16 (4) of EC Act 2001)

It is proposed that there would not be any budgetary requirement for deliverable 20.0.

21.0    Implementation of EC Act in the State

Brief about the Activity

21.1    NSDA would prepare a list of DC industry-wise for notification
21.2    NSDA would prepare a list of commercial building for notification
21.3    NSDA would ensure appointment of certified energy managers by DCs
21.4    NSDA would ensure mandatory energy audit by DCs
21.5    NSDA would establish systems and procedures for mandatory energy audit reports / action taken reports
21.6    NSDA would ensure implementation of ECBC in State under the overall guidance of BEE / GOI on voluntary basis
21.7    NSDA would ensure implement S&L Program under the overall guidance of BEE / GOI on voluntary basis
21.8    NSDA would prepare draft rules and regulations under EC Act 2001 (Section 57) those are consistent with the rules and regulations framed by Central Government.

Target group / Beneficiary

The main beneficiary would be the Designated Consumers within the State. Other beneficiaries would be energy audit firms, SDAs, ECSOs and other stakeholders.

Technology Adoption /Resource Requirements

•    IT infrastructure of NSDA and Web-linkages are pre-requisites.
•    Various databases are pre-requisites and are to be accessed from Development Group of NSDA on regular basis.

Implementation Strategy

•    NSDA would provide list of designated consumers and Commercial buildings for notification to State Govt.
•    NSDA would obtain the names of the certified Energy Managers appointed by the designated consumers.
•    NSDA would follow-up with designated consumers and Commercial buildings to carry out the mandatory energy audits within the prescribed time frame.
•    NSDA would update the list as and when required.
•    NSDA would implement ECBC, after amendment to suit local conditions, on voluntary basis
•    NSDA would implement S&L program on voluntary basis with the overall guidance of BEE

Implementation Issues

•    IT infrastructure and web-linkages are pre-requisites.
•    Preparation of various databases by the Development Group of NSDA is a pre-requisite.
•    ECBC modifications to suit local needs of Nagaland State are a pre-requisite.

•    Systems and procedures for reporting by designated consumers, reporting by commercial buildings is a pre-requisite.
•    Capacity building of NSDA, designated consumers and commercial buildings is a pre-requisite.

Activity Duration

Ongoing mandatory activities that can commence once the pre-requisites are accomplished.

Financial Implications

Rs. 48.0 Lakh per annum from 2nd year onwards.

Expected Output

•    Issuance of notifications to designated consumers and notified buildings.
•    Appointment of certified energy managers by designated consumers and notified buildings.
•    Conduct of energy audits by designated consumers and notified buildings
•    Implementation of ECBC
•    Implementation of S&L
•    Formation of rules and regulation under section 57

Activity Benefits

•    Implementation of EC Act in the State.
•    Implementation of energy efficiency measures by designated consumers and notified buildings.
•    Energy savings in the State of Nagaland.
 
Implementation Responsibilities

NSDA and BEE

22.0    Co-ordination with BEE, State Government, Central Government and other stakeholders

Brief about the Activity

22.1    NSDA would provide list of DCs and Commercial Buildings for notification
22.2    NSDA would coordinate on notification of State level EC day
22.3    NSDA would coordinate on notification of S& L
22.4    NSDA would coordinate on notification of ECBC
22.5    NSDA would coordinate with State government for documenting the impact of EC Act in State
22.6    NSDA would coordinate with State government on action taken on non-compliance in the State
22.7    NSDA would coordinate with State government regarding status of EC Fund utilization and the corresponding results achieved

Target Group / Beneficiary

BEE, NSDA, Designated Consumers, Energy Managers, Energy Auditors, and other stakeholders

Technology Adoption/Resource Requirements

•    IT infrastructure at NSDA as well as web-linkages of NSDA is felt to be pre-requisites for this activity.
•    Access to BEE sourced information on standards and labeling

Implementation Strategy

•    NSDA would provide the list of DCs, Commercial buildings, certified EMs & EAs and equipments list to State Govt. for notification.
•    NSDA would carry out updation of the list on a regular basis.
•    NSDA would access databases from development group for the above activities.
•    NSDA would intimate the notified DCs, commercial buildings and others stakeholders.
•    NSDA would provide reports on ECBC suiting local requirements.
•    NSDA would provide S&L reports for notification.  

Implementation Issues

•    Various databases of NSDA Development Group are pre-requisite for this activity.
•    Customisation of ECBC is a pre-requisite to this activity.
•    Capacity building on systems and procedures for e-filing by designated consumers and notified commercial buildings is a pre-requisite.
•    Capacity building on systems and procedures for documenting and follow-up on non-compliance is a pre-requisite.
•    Capacity building on systems and procedures of documenting EC Act impact and other reports like EC fund utilization status.
•    Systems and procedures of State Govt. for issue of notifications to be established.
 
Activity Duration

Activity can commence once the pre-requisites are in place and will continue as an ongoing mandatory activity

Financial Implication

Rs. 24.0 Lakh per annum (Provisional) from 2nd year onwards.

Expected Output

•    Various notifications as above
•    Document of EC Act implementation
•    Document on action taken and non-compliance
•    Document on EC fund utilization and result achieved

Activity Benefits

•    Implementation EC Act in the State.
•    Energy saving benefits to the designated consumers, commercial buildings and the State at large.

Implementation Responsibilities

NSDA, Govt. of Nagaland and BEE.

Summary of Overall Fund Requirements of NSDA for Implementation of Action Plan